by The U.S. Contract Research Organization (CROs) Market is estimated to be valued at US$ 17446.79 Mn in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:-
The U.S. contract research organization (CROs) market comprises companies that offer clinical trial and drug development related services to pharmaceutical, biotechnology, and medical device companies. CROs help reduce overall cost and timelines involved in new drug development by taking over individual parts of the research and development process and allowing core organizations to focus on other important aspects.
Market key trends:-
The U.S. CROs market is witnessing high growth owing to increasing adoption of novel drug development strategies such as personalized medicine, biomarker-based drug development by pharmaceutical companies. Biomarkers play an important role in improving drug development success rates by helping target patient populations that are most likely to benefit and experience fewer side-effects from new therapies. Also, CROs are increasingly offering specialized niche services for pharmacovigilance, oncology, central laboratory, and biostatistics which is further driving the market growth.
Porter’s Analysis:-
- Threat of new entrants: The threat of new entrants in the U.S. CRO market is moderate as the market requires significant investments and established relationships with pharmaceutical companies.
- Bargaining power of buyers: The bargaining power of buyers is high as pharmaceutical companies can negotiate on price and drive down costs by pitting CROs against each other for contracts.
- Bargaining power of suppliers: The bargaining power of suppliers is low as CROs can choose from multiple technology and service providers due to the fragmented nature of the supply market.
- Threat of new substitutes: The threat of new substitutes is low as there are no cost-effective alternatives to CRO services for clinical trial management and data management.
- Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous national and international players competing for contracts.
SWOT Analysis:-
- Strengths: Large CROs have global presence, infrastructure, expertise and relationships; Robust service portfolio covering entire drug development process.
- Weaknesses: High employee turnover rates increase project costs; Lower profit margins pressure pricing.
- Opportunities: Increase in clinical trial complexities and outsourcing; Emerging trials for orphan drugs and personalized medicines.
- Threats: Regulatory uncertainties can delay trials; Intense competition increases pricing pressure.
Key Takeaways:-
The Global U.S. CRO Market Growth is expected to witness high, exhibiting CAGR of 9.6% over the forecast period, due to increasing R&D investment in pharmaceutical and biopharmaceutical companies. The size of the U.S. CRO market was valued at US$ 17446.79 Mn in 2023 and is projected to reach US$ 35692.13 Mn by 2030.
Regional analysis: The U.S. dominates the U.S. CRO market with the highest market share in 2023. The region is anticipated to maintain its dominance during the forecast period as well owing to presence of majority of pharmaceutical companies and rising clinical trial activities in the region. The Midwestern region of the U.S. is expected to grow at the fastest rate of 12.4% annually.
Key players operating in the U.S. CRO market include Laboratory Corporation of America Holdings (Covance), IQVIA, Paraxel International Corporation, Syneos Health, PRA Health Sciences, Charles River Laboratoires International Inc. (CRL), Pharmaceutical Product Development (PPD), ICON Public Limited Corporation, Wuxi Apptec, Medpace Holdings, Inc, Medidata Solutions, Inc., Theorem Clinical Research, Pharmaron, Envigo, and Clinipace.
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